Correctional Health Care Organization Wellpath Emerges From Chapter 11 Reorganization

Wellpath, which provides correctional health care services, emerged from Chapter 11 bankruptcy and completed its financial restructuring. The bankruptcy filing was announced on November 11, 2024. The company sought to reduce about $550 million in debt. As part of the reorganization, Wellpath transitioned ownership to a group of its current and former lenders, referred to as the Ad Hoc Lender Group.

On January 30, 2025, former Wellpath business line Recovery Solutions, which provides behavioral health services on behalf of public entities, completed a sale transaction that created an independent organization focused on behavioral health. A group of Wellpath’s creditors . . .